Edinburgh Trams Project Facing Derailment

Edinburgh tram project on Princes Street on September 30, 2009 in Edinburgh, Scotland. The final cost could escalate to £750million, and might not come into service until 2014, three years behind schedule. (Photo by Jeff J Mitchell/Getty Images)

The plan to re-introduce trams in Edinburgh has lurched from crisis to crisis since construction began in 2008. The resignation of Trams chief David Mackay is the latest episode in the ongoing fiasco that threatens to completely derail the partly completed £600 million venture.

A dispute with the contractors over delays and costs has seen work literally halted in its tracks for several months and many now believe that it may never be completed at all.

In a public statement Mr Mackay said he was quitting for the sake of a calmer work/life balance, having ensured a number of key project milestones had been set in place. But many analysts believe he wanted to sever his involvement with a failing project.

Edinburgh had a tram system until it was scrapped in 1956 when buses were seen as the modern way forward.
In the latter years of the 20th century plans were instigated to build a new tram system. The rationale was that they would be cleaner, greener, quieter, and reduce the city’s congestion. But two years on and all local residents have seen for the huge amount of their money spent so far is chaos - endless disruption, a less extensive planned route, costs spiralling out of control, and completion dates slipping from 2011 to 2014.

Speaking about his decision to quit to the Scotsman newspaper and commenting on the German contractors Mr Mackay said: “Bilfinger Berger was a delinquent contractor who scented a victim, who probably greatly underbid and would use the contract to make life extremely difficult for the city. And they have done exactly that.”

He went on: “We had found crazy things like underground chambers on Princes Street and cables were not where they should be - it was hell on wheels.”

Describing these comments as aggressive and confrontational, Bilfinger Berger have now threatened to take legal action.

But they are not the only ones talking litigation; it is widely expected that the council will end up going to court to end the contract. Deputy council leader Steve Cardownie said in a statement that the relationship between TIE (the council’s tram developer) and its contractor had now passed the point of no return. “I can’t see a reason to continue a relationship which makes the relationship between Jordan and Peter Andre seem amicable,” he said.

The original budget of £512 million was to be met by a combination of Scottish government and City of Edinburgh council funding. However, estimates this summer topped £600 million and more recent comments by the chief executive of TIE suggest that no one really knows what the final figure could be.

The Scottish government has already made it clear that they will not give a penny more of funding, so other sources would need to be found. In the present economic climate many would like to see the project scrapped altogether or at least mothballed until such time as the public purse can afford it.